Colorado Extends Grace Period for Economic Nexus Compliance

Retailers will have until June 1, 2019, to follow Colorado’s new sales and use tax changes. The grace period will apply to the new economic nexus and destination sourcing laws. Both in-state and out-of-state retailers are eligible for the grace period.

Compliance Grace Period for Economic Nexus and Destination Sourcing

Sellers will receive an automatic waiver from the December 1, 2018, compliance date. The grace period will end May 31, 2019. Previously, the grace period was set to end March 31, 2019.

Economic Nexus and Destination Sourcing Law Details

A previous story discussed Colorado’s economic nexus collecting requirements. (TAXDAY, 2018/09/13, S.4)

Another story detailed Colorado’s destination sourcing requirements. (TAXDAY, 2018/10/24, S.3)

Reporting Requirements Still Enforced

Out-of-state retailers who do not collect during the grace period must still follow Colorado’s reporting requirements. The reporting requirements will be strictly enforced against non-collecting retailers during the grace period.

News Release, Colorado Department of Revenue, December 6, 2018; Sales Tax Changes Grace Period and Key Facts, Colorado Department of Revenue website, December 6, 2018

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CCHTaxGroup

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